
Wondering why the new iPhones are priced so much lower then the original versions were? The latest(“next generation”) Iphones, which come equiped with 3G and GPS capability as wel as better battery life, sell for $199(for models with 8GB of memory) and $299(for models of 16 GB memory)
That’s a $200 discount from the most recent prices of previous-generation iPhones:$499 for the 8GB version and $499 for the 16GB version. And of course Apple charged $599 for its top of the line 8GB iPhone at launch more than a yewar ago---three times what the new 8GB model cost.
Price drops on technology products aren’t unusual, but they are less frequent when new performance-improving features are added to the mix, however, experts say several factors are making the new low prices possible.
Price and Quality
Tina Teng, an analyst specializing in wireless communications for market research firm iSuppli, belives that the 3G and GPS radios included in the new models probably did add cost to the new iPhone, but she points out that prices for other components are declining.
According to Gartner Vice president Ken Dulaney, even the iPhone’s 3G radio technology likely costs considerably less now than it might have a year ago, since most companies that make chips for cell phones are converting to the faster technology anyway .Increased supply means lower prices.
Another factor that may be contributing to the lower costs of the new iPhones is Apple’s willingness to introduce some cost cutting design changes, including its decision to use plastic instead of metal on the phone’s case. Will that decision significantly degrade the product’s quality? At this writing, it’s too soon to tell.”For users’ what matters [are] the durability and functionality ”Teng says ”I am sure [Apple] did a lot of stress tests to make sure the materials they are using now are still going to be durable.
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